Chapter 5: Management of Relationships within the Supply Chain Flashcards
What is Lean Synchronisation?
Is when the products are delivered to exacting customer specifications (Quantity, Time and Location of Delivery), but this is done at the lowest possible cost.
How does a traditional manufacturing approach prevent downstream domino effects as a result shocks?
They create buffer inventory of produced goods, this isolates shocks preventing downstream effect.
What is the cost of Buffer Insurance?
[1] Higher inventory costs [2] Slow throughput times [3] Less flexibility to change the output product as previous stock would vary.
What is Supply Chain Relational Management?
Management of supplier relationships down to the interfaces shared between organisations supplying goods to maximise their value. Relationships are built to be mutually beneficial and effective.
What are the 5 types of SRM Relationship and how are they part of a linear scale?
[1] Transactional Relationship: Exchange of services in an agreed timescale for an agreed price.
[2] Contractual Relationship: A transactional exchange built around meeting contractual terms that still shows little trust.
[3] Value Added Relationship: Done by suppliers to retain customers - custom solutions to add value to the process.
[4] Collaborative Relationship: Supplier and Customer work closely to share responsibility, resources and rewards.
[5] Partnerships: Collaborative w/ mutual dependency. They share knowledge, resources, activities and achievements. They will have shared ventures where legal ownership and management is split.
What is MRP 1?
Material Resource Planning: When new orders of raw materials are scheduled based on previous sale orders and new sales forecasts.
What is MRP 2?
Manufacturing Resource Planning: MRP1 + Projections of growth in Labour, Machinery and Premises to create a future production plan.
What is Statistical Process Control?
A methodology to measure and control quality during the manufacturing process. They obtain quality parameters like weight, size and strength and test individually or through samples to ensure product is within upper and lower limit bounds.
